The Goods & Services Tax Bill was on Friday introduced in the Lok Sabha. The bill aims to provide a major taxation reform by introducing a national sales tax that will replace a large number of overlapping state duties that deter investment.

Finance Minister Arun Jaitley said interests of all states will be taken care of. The GST Bill will bring the “single biggest tax reform since Independence.”

“First instalment of compensation to the states will be paid in this financial year. No state will lose a rupee of revenue. Its a win- win situation,” said Jaitley.

“I do not intend to pass it (GST Bill) in the current Parliament session. We will formally take it up in the next session,” Jaitley said in the Rajya Sabha, while speaking on the Appropriation (No 4) Bill, 2014.

The Bill, which was returned, authorises payment and appropriation of certain additional sums from and out of the Consolidated Fund of India for 2014-15. It was passed by Lok Sabha on December 10.

Describing the GST reform as a “win-win situation” for both the Centre and the states, the Finance Minister said the bill would not have “fear of the unknown” unlike Value Added Tax (VAT).

TMC Chief Mamata Banerjee responded positively to the bill however she said that she was not consulted. “GST is our manifesto commitment, don’t have a problem if states are adequately compensated. We weren’t consulted,” said Mamata. (Indian Express)